Financial Metrics
The increasing complexity of business • Define actual vs. perceived vs. “real”
and the evolving importance of, and
• Management interviews • Secondary research • HR documents
Business System Diagrams
Activity ~~~~ ~~~~
CSF
~~~~ ~~~~
~~~~ ~~~~
~~~~ ~~~~
~~~~ ~~~~
~~~~ ~~~~
Even after adjusting for asset write-up, financial performance has not met corporate expectations or competitive standards due to an inappropriate organization (and cost) structure
1
ANALYUGH MODEL
17
3
COMPETITIVE BENCHMARKING
18
4
COMPETITIVE POSITIONING
19
5
CORE COMPETENCTY ANALYSIS
20
6
CUSTOMER SEGMENTATION
21
7
EXPERIENCE CURVE
CLIENT EXAMPLE: HYPOTHESIS/ANALYTICAL PLAN
Hypothesis
Overall Hypothesis Organizational philosophy needs to be modified
Analysis
Supporting Hypothesis Existing organization does not adequately support the business strategy
Strategy Practitioner Tools
Core Tools October 1999
DRAFT: FOR DISCUSSION ONLY /Version: 660_w3/ppt/sf
0
© 1998, PricewaterhouseCoopers L.L.P.
Table of Contents
• Define business system, operating environment
• Define CSFs, organizational requirements along business system
• Define how existing organization supports business system, CSFs
29
15
ISSUE TREE/ISSUE MAP
KEY PERFORMANCE INDICATORS MARKET PROFITABILITY PORTFOLIO ANALYSIS REAL OPTIONS/STRATEGIC OPTION SCALE CURVE SCENARIO ENVISIONING SENSITIVITY ANALYSIS SEVEN S FRAMEWORK STAKEHOLDER ANALYSIS SWOT VALUE BASED MANAGEMENT VALUE CHAIN ANALYSIS VALUE TREE VOICE OF THE CUSTOMER
Info. Required
Info. Source
End Products
• Key activities, processes by LOB • CSFs along business system by
LOB • Existing organizational elements
impacting business system
• Financial performance vs. competitors, budget/plans
• Overview of cost structure (e.g., fixed vs. variable costs)
• ROA, NI adjusted for asset write-ups
22
8
FINANCIAL MODELING
23
9
FIT VS. ATTRACTIVENESS MODEL
24
10
FIVE FORCES ANALYSIS
25
11
GANTT CHART
26
12
GAP ANALYSIS
27
13
GROWTH SHARE MATRIX
28
14
INDUSTRY VALUE CHAIN ANALYSIS
SC111898KR-Sydney
1
© 1998, PricewaterhouseCoopers L.L.P.
Analysis Plan
Analysis Plan Summary
The analysis plan details a problem-solving process and specific analysis which must be developed to assess a hypothesis. The analysis plan must be flexible and that the analyses to be conducted and the deliverables to be produced may change during the course of the project.
• Historic and projected financial data
• Asset write-up information • Summary cost, volume info for
production units
• Annual reports, 10Ks, 10Qs, etc. • Company financial reports • Financial department interviews